Tyre Industrymarket overview with examples of CEAT

Tyre market overview

1. Tyre Industry

2. Indian Tyre Market Overview The Indian tyre market is experiencing a boom, driven by several factors: Rapid Automotive Growth: A surge in demand for passenger cars, two-wheelers, and commercial vehicles due to rising disposable incomes and a growing middle class. Focus on Safety & Standards: Government initiatives promoting road safety and stricter vehicle emission regulations are driving demand for high-quality tires, particularly radials. Expanding Infrastructure: Investments in road construction and improvement are leading to more vehicles on the road, requiring frequent tire replacements. The Indian tyre market estimated USD 13.11 billion (as of FY 2023) Projected to reach USD 25.50 billion by FY 2031, reflecting a robust CAGR of 8.71%. Estimates suggest the volume reached 185.42 million units in 2022 and is expected to grow further.

3. Key Segments: By Vehicle Type: Passenger car, two-wheeler, commercial vehicle, OTR (off-the-road) By Tire Type: Bias, radial (radials are gaining significant traction due to their superior performance and fuel efficiency) By Application: OEM, Replacement (The OEM segment involves supplying tires directly to vehicle manufacturers for new vehicle assembly, while the replacement market involves aftermarket sales for tire replacement and maintenance) Major players in market are MRF, Apollo Tyres , JK Tyres , and CEAT.

4. Industry Trends Focus on Sustainability: Green Tires Recycled Materials End-of-Life Management  2. Technological Advancements: Smart Tires Self-Healing Tires Airless Tires 3. Shifting Consumer Preferences: All-Season Tires Run-Flat Tires Performance Tires 4. Evolving Business Models: Tire-as-a-Service ( TaaS ) Digitalization

5. Key Players in Market Major Domestic Players: MRF Limited Apollo Tyres Ltd CEAT Limited JK Tyre & Industries Ltd Balkrishna Industries Ltd (BKT ) Global Players in India: Michelin Bridgestone Goodyear Continental Yokohama Pirelli The Indian tyre industry boasts a strong domestic presence alongside some multinational players. Here are the key players to be aware of:

6. Market Segmentation 1. By Vehicle Type: Passenger Cars (PCs) Two-Wheelers (2Ws) Three-Wheelers (3Ws) Light Commercial Vehicles (LCVs) Medium & Heavy Commercial Vehicles (M&HCVs) Off-the-Road (OTR) Tyres 2. By Tyre Construction: Radial Tyres Bias Tyres 3. By Rim Size: Upto 20 inches More than 20 inches 4. By Sales Channel: New Product (OEM) Replacement Market The Indian tyre industry is segmented across several key categories, allowing manufacturers to cater to specific needs and preferences. Here's a breakdown of the main segments : 5. Additional Considerations : Emerging Segments Retreading

7. Consumer Behaviours Price Sensitivity Brand Perception Purchase Decisions Evolving Preferences Influence of Digital Platforms Additional Factors Vehicle Type Geographic Location Consumer behaviour in the Indian tyre market is a complex interplay of factors, influenced by a mix of economic considerations, safety concerns, and evolving preferences. Here's a breakdown of some key aspects:

8. Consumer Trend in Tyer Industry 1. Increased Focus on Value: Cost-consciousness remains, but with a twist 2. Rise of Online Research and Purchase Digital Savvy Consumers Convenience is King 3. Growing Awareness of Safety and Performance: Safety First Performance Matters 4. Brand Preference is Evolving: Loyalty with a Caveat Shifting Priorities The Indian tyre industry is witnessing a shift in consumer behaviour, driven by several key trends: 5. Evolving Needs Based on Vehicle Type : Segmentation Matters Targeted Marketing Emerging Trends Subscription Models Sustainability Concerns

9. Opportunities 1. Capitalizing on Growth Segments: Passenger Cars (PCs) Light Commercial Vehicles (LCVs) Electric Vehicles (EVs) 2. Meeting Evolving Consumer Needs: Value-Added Products Digital Presence Sustainability Focus 3. Exploring New Business Models: Subscription-based Services ( TaaS ): Focus on Aftermarket Sales: 4. Additional Opportunities : Innovation Rural Market Expansion Focus on Exports The Indian tyre industry presents a multitude of exciting opportunities for companies like CEAT. Here's a breakdown of some key areas to explore:

10. Preparedness for sales The sales executive was responsible for :

11. Case Study 1: Capturing the Fleet Market Customer: ABC Transportation, a large logistics company with a fleet of over 100 trucks . Challenge: ABC Transportation is currently using a mix of tire brands for their fleet, leading to inconsistent performance and higher maintenance costs. They are looking for a reliable tire supplier who can offer a cost-effective solution.

12. Case Study 1 : Capturing the Fleet Market Solution: The CEAT sales executive analyzes ABC's fleet operations and recommends a combination of CEAT's fuel-efficient fuel saver tires for highway routes and their durable range for urban deliveries. The sales executive highlights the benefits of: Reduced Total Cost of Ownership (TCO): Lower fuel consumption and longer tread life of CEAT tires can significantly reduce long-term costs for ABC. Standardized Fleet: Using a single brand simplifies maintenance and inventory management for ABC. Reliable Performance: CEAT's focus on quality ensures consistent performance and fewer roadside breakdowns . Outcome: The sales executive presents a comprehensive proposal outlining cost savings, product specifications, and service guarantees. By addressing ABC's specific needs and demonstrating the value proposition of CEAT tires, the sales executive secures a long-term contract with ABC Transportation.

13. Case Study 2: Upselling Performance for Passenger Cars Customer: Mr. Shah, a young professional looking to replace the tires on his premium sedan. He is price-conscious but also interested in good performance . Challenge: Mr. Shah is initially considering budget-friendly tires. The challenge for the CEAT sales executive is to convince him of the benefits of upgrading to a higher-performance tire.

14. Case Study 2: Upselling Performance for Passenger Cars Solution: The sales executive understands Mr. Shah's driving style and preferences. He then demonstrates the advantages of CEAT's high-performance tires, such as: Superior Handling: Improved grip and responsiveness for a more dynamic driving experience. Shorter Braking Distances: Enhanced safety with superior braking performance. Reduced Noise Levels: A quieter and more comfortable ride . Outcome: By showcasing the tangible benefits of better handling, safety, and comfort, the sales executive convinces Mr. Shah to invest in a higher-performance CEAT tire, exceeding the initial budget consideration .

15. Tire Market Size The global tire market size reached US$ 164.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 256.8 Billion by 2032, a growth rate (CAGR) of 4.9% during 2024-2032.  The market is experiencing dynamic growth driven by rapid technological advancements in tire manufacturing, robust growth in the automotive industry, the implementation of stringent regulatory policies, growing consumer preferences for specialized and eco-friendly tires, and the rising impact of urbanization and infrastructure development.

16. Sales Plans and Strategies 1. Understand Segment Needs and Buying Behaviors: Conduct market research and competitor analysis to understand the specific needs and buying motivations of each segment. Consider factors like: Price sensitivity Performance expectations Decision-making process 2. Develop Tailored Sales Strategies: • Price-focused Segments •Performance-focused Segments •Fleet Management Segments 3. Craft Actionable Sales Plans: •Set SMART Goals •Develop Sales Activities: Outline specific actions your sales team will undertake, such as: Number of sales calls per week Presentations and demos to be delivered Trade shows and industry events to attend Content marketing initiatives targeted at each segment (e.g., blog posts, social media campaigns) •Utilize Sales Tools •Sales Training 4. Additional Tips : Develop strong relationships Offer value-added services Leverage digital marketing Track and measure results

17. Building Relationships with Key Stakeholders 1. Identify Key Stakeholders: Direct Customers Indirect Customers Industry Associations Government Agencies 2. Develop Relationship-Building Strategies: Networking Events Educational Events Co-Marketing Opportunities Sponsorship Community Involvement 3. Effective Communication and Follow-Up: Regular Communication Personalized Communication Active Listening Follow-Up 4. Building Trust and Transparency: Ethical Business Practices Focus on Value Transparency in Pricing 5. Leverage Technology : CRM Software Social Media

18. Tracking and Measuring Sales Performance 1. Define Key Performance Indicators (KPIs): Sales Volume Activity Metrics Conversion Rates Average Deal Size Customer Acquisition Cost (CAC) Customer Satisfaction 2. Utilize Sales Tracking Tools: CRM Software Sales Dashboards 3. Territory-Specific Considerations : Market Share Local Market Trends 4 . Reporting and Analysis : Regular Reporting Individual vs. Team Performance 5. Utilizing Data for Action: Identify Bottlenecks Develop Targeted Solutions

19. Example case studies Territory management strategies Case Study 1: Michelin - Targeting Fleet Management with Technology Challenge:  Michelin needed to expand sales to large fleet management companies. Strategy :  They developed a web-based fleet management software solution that tracked tyre performance, fuel efficiency, and maintenance needs. Result :   By offering value beyond just tyres, Michelin secured long-term contracts with major fleet management companies, increasing sales significantly. Adapting to the Tyre Market: A Tyre company could develop a mobile app for fleet managers that allows them to track tyre pressure, schedule replacements, and access real-time data on tyre performance.

20. Example case studies Territory management strategies Case Study 2: Bridgestone - Building Relationships with Car Dealerships Challenge:  Bridgestone wanted to increase sales through car dealerships. Strategy :  They developed a training program for dealership technicians on proper tyre installation, maintenance, and safety protocols . Result :   By building trust and expertise with dealership technicians, Bridgestone secured preferential placement for their tyres on new vehicles, boosting sales . Adapting to the Tyre Market: A Tyre company could offer co-marketing campaigns or training workshops on new Tyre technologies to car dealerships in their territory, strengthening relationships and promoting their products.

21. Example case studies Territory management strategies Case Study 3: Goodyear - Utilizing Data Analytics for Targeted Marketing Challenge:  Goodyear wanted to personalize marketing efforts for different customer segments . Strategy :   They analyzed customer purchase data and demographics to identify buying behaviors and preferences . Result :   Based on data insights, Goodyear developed targeted marketing campaigns through various channels, leading to increased sales across different segments . Adapting to the Tyre Market: A Tyre company could analyze customer data to identify segments that prioritize features like fuel efficiency or off-road performance. They could then tailor online advertising and social media campaigns to target these specific preferences

22. Some additional resources Tire Industry Research: https://tireindustryresearch.com/ provides market research reports and analysis on the global tire industry . National Tire Dealers & Retreaders Association (NTDRA): https://www.tireindustry.org/navigation/about/history/tias-fascinating-history/ is a US-based association for tire dealers and retreaders . They might have resources or publications related to sales strategies. European Tyre and Rubber Manufacturers' Association (ETRMA): https://www.etrma.org/ is a European association for tire manufacturers. They might have resources or reports on successful sales strategies in different regions.

23. Any Questions ?